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zlopas [31]
2 years ago
11

Suppose that the inverse demand for San Francisco cable car rides is pequals20minusStartFraction Upper Q Over 1000 EndFraction ​

, where p is the price per ride and Q is the number of rides per day. Suppose the objective of San​ Francisco's Municipal Authority​ (the cable car​ operator) is to maximize its revenues LOADING.... What is the​ revenue-maximizing price? The​ revenue-maximizing price is
Business
1 answer:
MariettaO [177]2 years ago
5 0

Answer: The​ revenue-maximizing price is $10.

Explanation:

Given that,

Inverse demand function: P = 20 - \frac{Q}{1,000}

Where,

P - Price per ride

Q - Number of rides per day

Revenue(R) = P × Q

                   = 20 - \frac{Q}{1,000} × Q

                   = 20Q - \frac{Q^{2} }{1,000}

Differentiating 'R' with respect to Q for calculating Marginal revenue(MR):

MR = 20 - \frac{Q}{500}

Here, MC = 0

MR = MC

20 - \frac{Q}{500} = 0

Therefore, Q = 10,000

P = 20 - \frac{Q}{1,000}

  = 20 - \frac{10,000}{1,000}

  = $10

Hence, the​ revenue-maximizing price is $10.

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Emilee have to worry about doing anything reltaed to that because she hired alonzo

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2 years ago
Kuhn Bicycle Company has been manufactring its own seats for its bicycles. The company is currently operating at 100% capacity,
AfilCa [17]

Answer:

It is cheaper to buy the seats.

Explanation:

Giving the following information:

The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats for $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products.

Make in house= [8 + 9 + (9*0.6)]*50,000= $1,120,000

Buy= 21*50,000= $1,050,000

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2 years ago
Rupesh is mowing grass to save money for a vacation. he charges $12 per yard. rupesh already has $40 and wants to have at least
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Tina and her best friend Aaliyah want to start a medical transcriptionist company together. They grew up together and know each
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Answer:

Limited liability partnership (LLP) or a limited liability company (LLC)

Explanation:

Both the LLP and LLC provide limited liability to the owners and they are both pass through tax entities. That means that they are not directly taxed, instead their owners are taxed.

Depending on where Tina and Aaliyah live, they might not be able to open a LLP, and instead they will need to start a LLC. Any of them will satisfy their needs, but starting a LLC is a little bit more complicated and can cost more money. An LLC is usually better if there are several partners, but in this case if they can avoid the cost of opening a LLC it would be better for them.

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2 years ago
The cash register tape for Kingbird Industries reported sales of $10,032.30. Record the journal entry that would be necessary fo
siniylev [52]

Answer:

(a)

Dr Cash $10,032.30

Cr Cash Over and Short$74.90

Cr Sales Revenue $10,107.2

(b)

Dr Cash $10,148.54

CrSales Revenue$10,107.2

Cr Cash Over and Short$41.34

Explanation:

Kingbird Industries

(a)

Dr Cash $10,032.30

Cr Cash Over and Short$74.90

Cr Sales Revenue $10,107.2

($10,032.30+$74.90)

(b)

Dr Cash $10,148.54

(10,107.2+$41.34)

CrSales Revenue$10,107.2

Cr Cash Over and Short$41.34

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2 years ago
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